QUESTION: 151

Under what circumstances the

money may be spent in excess of
allocation of budget, during a financial
year?
QUESTION: 152

What checks are to be applied for

purchase of stores, in a department?
QUESTION: 153

What is currency chest, is the balance

of money in currency chest is a money in
circulation?
QUESTION: 154

What is the necessity to maintain a

currency chest in a Non-Banking
Treasury? What is the procedure to
deposit and withdraw money from a
currency chest?
QUESTION: 155

How Civil Court and Criminal Court

deposits are kept and repaid?
QUESTION: 156

Has the State Government any right

to transfer the audit of urban local bodies
to Accountant General? If yes, outline the
procedure?
QUESTION: 157

Please comment on the action taken by the

competent authority, with supporting rules.
(a) An officer of PWD department draw a cheque
of Rs. 1,00,000 at the close of the financial year
and keep it in the chest to show the full utilization
of funds granted?
(b) Executive Engineer, PWD, Amritsar claimed
Standard Rent for residential building allotted to an
employee of Punjab Roadways, Amritsar?
QUESTION: 158

The post of an Executive Engineer

was vacant since long. The Department
appointed a Junior Engineer against the
vacancy. The Accountant General Punjab
objected to this arrangement because the
post of Executive Engineer is Gazetted
and that of JE is non-Gazetted.
QUESTION: 159

As per rules no pay and allowances

should be charged to contingent
expenditure, What are the exception to
this rule?
QUESTION: 160

What is a fraud? Which conditions

encourage it?
ANSWER: 151

In exceptional and un-avoidable circumstances

a Controlling officer may draw any amount
above the sanctioned budget up to 25% and
Administrative Secretary may draw up to 50%
in excess of the budget granted, vide Note 2
below rule 17.15 of Punjab Financial Rules,
Volume-I
ANSWER: 152

The following are the checks to be applied on a bill for purchase of

stores:
a) Strict conformity should be maintained with the Store Rules
given in Appendix 8 of Punjab Financial Rules, Vol. II.
b) That purchase has been made in most economical manner
and according to the requirement of the Department.
c) The purchase should be made from the lowest tender unless
there are any special reasons to the contrary.
d) Stores should not be purchased in small quantities.
e) Stores should not be purchased much in advance of the
occasion it actually required.
15.2 of Punjab Financial Rules, Volume-I
ANSWER: 153

The currency chest is the chest maintained in a

Treasury or sub treasury whose business is not
carried out by a bank, and into which separate
receptacles are kept under double lock under the
control of the in-charge of the Treasury. Notes held
in a currency chest shall not be notes in circulation,
while coins held in a chest shall be a part of the
assets of the Issue Department. Vide rule 451 & 464
of the Punjab Treasury Rules, Volume-I.
ANSWER: 154

Currency chest is required to be maintained a Treasury or sub

treasury whose business is not carried out by a bank, and into
which separate receptacles are required to be kept under double
lock. notes and coins held in the chest shall be kept quite distinct
from the treasury balances. while receiving money into and giving
it out of the currency chest, the Treasury Officer shall not hand over
the cash and the Currency Chest Slip to the treasurer, under any
circumstances. The Currency Chest Slip shall positively be handed
over by Treasury Officer or Superintendent Treasury Office, himself
or through his Sewadar to the Accountant. Silver-fifty and twenty-
five paise, copper, bronze or nickel shall never be deposited in the
chest. Rule 451 and Proviso thereunder & Rule 452(a) of the
Punjab Treasury Rules, Volume-I
ANSWER: 155

As per provisions or rule 386 of the Punjab Treasury Rules, The deposits of Civil
and Criminal Courts other than deposits of Small Cause Courts and Sheriff's
Petty Accounts shall be treated in accounts as Revenue Deposits. The deposits
of small Cause Courts and Sheriff's Petty Accounts shall be accounted for
under " Civil Courts Deposits" and "Personal Deposits",
Rule 388 of the Punjab Treasury rules provide two methods of repayment of
court deposits: -
(i) When each deposit is separately paid into the treasury, repayments
shall be made upon vouchers in form P.T.R. 58 passed by the presiding officer
and setting forth the particulars necessary for the entries in the treasury
Registers; and
(ii) When the civil courts and Magistrate merely bank with the Treasury,
remitting without detail their gross deposit receipts for credit in a personal
ledger, repayments shall be made by cheques on the treasury which shall be
taken to debit of the same personal account.
ANSWER: 156

The State Government may entrust the work of

audit of the accounts of "any other authority or
body" by or under any law made by Parliament
under the provisions of Article 149 of the
Constitution, to Comptroller and Auditor General.
The cost of such audit is recoverable from the
authority or body whose accounts are audited. Vide
Para (ii) of Section C-IV Appendix -5 of GAR provides
ANSWER: 157

(a) Note 1 below rule 2.14 of the Punjab Financial Rules,

Volume-I, provides that drawing a cheque and deposit the
amount in the chest at the close of year to show the full
utilization of grant is a serious crime. The Action of the
officer is against the provision of above rules and is liable
to disciplinary action.
(b) Note 2 below rule 44 of GAR, 1990, provides that
PWD department is not meant for allotment of residential
building. Hence any service on account of building for
residential purposes to an employee of a department,
does not fall under the definition of service therefore,
charging standard rent is as per rules.
ANSWER: 158

Rule 6.2 of the Punjab Financial Rules, Volume-

I read with Note 2 thereunder provides that an
equal number of posts may be filled in the
lower cadre against the posts lying vacant in
the higher cadre, without changing the
numerical strength of the office, irrespective of
the fact that the post lying vacant is Gazetted
or not. Therefore the objection of Accountant
General is not tenable.
ANSWER: 159

Rule 268(2) of Punjab Treasury Rules, Volume-I, exempt the

following payments of being charged as contingent charges:
(a) Hot weather establishment;
(b) Mazdoors engaged on the manual Labor and paid at daily
or monthly wages;
(c) Sweepers (whether whole-time employees or not);
(d) Extra potedars engaged under rule 498 to accompany
remittances, etc.;
(e) Temporary Field Establishments on Survey and Settlement
works; and
(f) Different classes of class IV employees (Whole-time
employee or not) given below who have been declared as
ineligible for pension including those who may in future,
be declared as ineligible for pension
ANSWER: 160

According to rule 6.20 of IIGA&A a fraud in expenditure is a fraud which

indicate a payment to which the payee is not legally entitled or in others a
payment made in respect of a claim which is not a accordance with facts.
Fraud as regards to receipt means Government revenue /dues not recovered
promptly and assessed accurately. Refund of revenue which has never been
deposited with government/ or excess refund than the required or not
depositing the receipts into the treasury.19.16 of IIGA&A
The following are some of the main reasons which causes a fraud.
i. The amount of the bill not written words.
ii. Writing amount of cheque carelessly by leaving space in between two
words which may make alteration possible.
iii. Total of the bill not checked by the DDO/DTO
iv. Difference in copies of the bill submitted at treasury and to AG, Punjab.
v. Carless assessment and recovery of revenue.
vi. Relying upon the lower staff for collection and payment in the offices.
THANKS